Group incentives and financial performance: the moderating role of innovation

Using a nationally representative and multisource data set, this study examines the mediating role of organisational commitment in the relationship between group incentives and financial performance. The study also investigates the moderating role of innovation in these relationships. The results demonstrate that organisational commitment partially mediates the relationship between group incentives and financial performance. The findings of this study support the hypotheses that the relationships of group incentives with organisational commitment and financial performance are stronger in more innovative companies than in less innovative companies. The results provide implications on how group incentives affect financial performance and which organisations in particular should provide their employees with group incentive practices.     

Opportunity,fair process and relationship value: career development as a driver of proactive work behaviour

In line with recent findings from organisational justice theory, we hypothesised that employee proactive behaviour and careerist orientation is predicted by the interplay of perceived favourability of career development opportunities, the perceived fairness of the procedures used to decide them, and employee organisational commitment. Employees (N = 325) of a large financial services organisation responded to a self‐completion questionnaire. As predicted, when career development opportunities were viewed unfavourably, perceived procedural justice was significantly and positively related to individual proactive behaviour and significantly and negatively related to careerist orientation but only when organisational commitment was high. It appears that high procedural justice may only ‘offset’ the negative effects of unfavourable career development opportunities when employees identify with, and are committed to, their organisation. Further support is presented for a relational, rather than instrumental, model of procedural justice when reflecting on employee reactions to their employers’ policies and decision‐making. Implications for theory and practice are discussed.     

Chief executive officer ability,corporate social responsibility,and financial performance: The moderating role of the environment

This paper seeks to explore how chief executive officer (CEO) ability influences the economic impact of corporate social responsibility strategic decisions. Currently, the evidence on the impact of corporate social responsibility on the value of the company is mixed; in this paper, we aim to observe the moderate role played by this particularity of the CEO in the relationship between socially responsible commitment and financial performance. Our results identify that the most able CEOs make investments in social and environmental practices that lead to greater financial performance; in contrast, the less able CEOs can overinvest or underinvest in an opportunistic way for personal benefit at shareholders' expense. In addition, the role that CEO ability plays in social and environmental strategies is particularly pertinent in munificent environments that foment managerial discretion; in these contexts, high managerial ability leads to investment in socially responsible performance, which benefits shareholders by alleviating moral hazard.     

Strategic integration of HRM and firm performance in a changing environment in China: the impact of organisational effectiveness as a mediator

In the context of dramatic changes in China, this paper investigates the role of organisational effectiveness as a mediator in the relationship between the strategic integration of human resource management (HRM) and firm financial performance. Our study is based on the survey responses of 618 managers in state-owned and private (domestic and foreign-invested) enterprises in China. While most studies of the linkage between HRM practices and firm performance in China have measured firm financial performance or used an ad hoc combination of financial and non-financial indicators, we argue for a distinction to be made between non-financial organisational effectiveness and financial performance. As hypothesised, controlling for sector (state-owned vs. private), we find positive relationships between perceived changing business environment and strategic integration of HRM, and between strategic integration of HRM and organisational effectiveness. Our research adds an important conceptual link by showing that organisational effectiveness plays an important role as a mediator in the HRM and firm financial performance relationship and reinforces the importance of the organisational and environmental context for HRM.     

The impact of HR practices on the performance of business units

This article examines the impact of HR practices and organisational commitment on the operating performance and profitability of business units. Using a predictive design with a sample of 50 autonomous business units within the same corporation, the article reveals that both organisational commitment and HR practices are significantly related to operational measures of performance, as well as operating expenses and pre‐tax profits.     

The HR department's role in organisational performance

Research into how HR contributes to organisational performance is plentiful yet plagued by challenges. Alongside the ‘black box’ issue between HRM and performance, the time‐lag effect and the range of performance indicators applied, the role of the HR department in this relationship is critical although often ignored. A longitudinal case study is presented here that focuses particularly on this issue, and shows a complex picture of improving HR department importance alongside high‐level financial performance, but declining employee commitment and morale. The article suggests that the tensions between the rhetoric of HRM strategy, the grim reality of the employee experience and a lack of focus on human capital meant the outstanding financial performance was not sustainable in the longer term. The inherent conflict in serving both management and employees in process‐and peopleorientated roles is highlighted.     

Human resource management practices and psychological contracts in Swiss firms: an employer perspective

This article investigates the relationship between HRM practices and organisational performance, considering the fulfilment of the psychological contract as an intermediate variable. Apart from testing the influences of a high-investment HRM system index on the psychological contract, the influence of individual HRM practices and their interaction was examined. The sample consisted of HR managers of 92 firms in Switzerland and the data were collected for the Cranfield Network project. The results showed that the high-investment HRM system index predicted the fulfilment of the psychological contract, and some of the individual HRM practices were correlated with the fulfilment of the psychological contract. The interaction effect of performance appraisal and performance-based pay on the fulfilment of the psychological contract showed that performance appraisal is only effective in combination with a tangible consequence in the form of performance-based pay. We neither found a mediation effect for the psychological contract nor an association with organisational performance. This might be due to the fact that the questionnaire was filled in during the financial crisis in 2008 and that the organisational performance was assessed in an economic crisis. Our study sheds light on the relationship between HRM practices and the psychological contract and contributes to the body of research on psychological contracts from a macro level perspective.     

Justice source and justice content: evaluating the fairness of organisational career management practices

This article presents part of the findings of a multi‐method study into employee perceptions of fairness in relation to the organisational career management (OCM) practices of a large financial retailer. It focuses on exploring how employees construct fairness judgements of their career experiences and the role played by the organisational context and, in particular, OCM practices in forming these judgements. It concludes that individuals can, and do, separate the source and content of (in)justice when it comes to evaluating these experiences. The relative roles of the employer, line manager and career development opportunities in influencing employee fairness evaluations are discussed. Conceptual links with organisational justice theory are proposed, and it is argued that the academic and practitioner populations are provided with empirical evidence for a new theoretical framework for evaluating employee perceptions of, and reactions to, OCM practices.     

The outcomes of works councils: the role of trust,justice and industrial relations climate

This article investigates trust and organisational justice as antecedents of works council (WC) effectiveness perceptions and the moderating role of industrial relations climate on this relationship. A 2‐year longitudinal study of WC participants in two UK organisations (a housing association and a professional services firm) was undertaken. Results show positive significant relationships between both trust and organisational justice, and WC outcomes of WC performance, WC usefulness and outcome satisfaction. Industrial relations climate is found to moderate the relationship between justice and WC performance, WC usefulness, and outcome satisfaction.     

How does justice matter in achieving buyer–supplier relationship performance?

This study presents an analysis exploring how four types of justice (distributive, procedural, interpersonal, and informational) influence dyadic relationship performance in the buyer–supplier context. Underpinned by loose coupling theory, we build a mediating framework in which we propose that a high level of justice (or fairness) as mutually perceived by both parties drives buyer–supplier relationship performance through bolstered coupling links in mutual knowledge sharing, continuous commitment, and relationship investment. Our survey of 216 paired manufacturers (suppliers) and distributors (buyers) in China generally supports this argument, leading to a conclusion that justice is not a direct determinant of buyer–supplier performance but a critical conduit that nourishes mid-range coupling behaviors, which in turn promotes a successful relationship. Based on findings from this study, firms are encouraged to endorse all four kinds of justice in managing supply chain relationships. However, when constrained by resources, the recommendation for managers is to focus on achieving a high level of perceptual convergence on procedural justice and informational justice with the exchange partner, because mutual perceptions of procedural and informational justice have the strongest effects on coupling behaviors and buyer–supplier relationship performance.     

Drivers of green supply management performance: Evidence from Germany

Five potential drivers of green supply management performance were identified in the literature review: green supply management capabilities, the strategic level of the purchasing department, the level of environmental commitment, the degree of green supplier assessment, and the degree of green collaboration with suppliers. These constructs were used to form a structural model explaining the environmental performance and the purchasing performance. The model was analysed with SmartPLS 2.0 using data collected among German purchasers. The results suggest that the degree of green supplier assessment and the level of green collaboration exert direct influence on environmental performance. These two practices are driven by the strategic level of the purchasing department and the level of environmental commitment of the firm. Whereas commitment influences green assessment directly, the impact of commitment on green collaboration is mediated by the capabilities of the purchasing department. Furthermore, the results show that environmental performance has a positive impact on purchasing performance.     

The moderating effect of leadership on perceived organizational justice and affective commitment: a study in China

While western literature proves the importance of procedural justice, interactional justice is found to have a greater impact on employees in China. This study investigates the effect of employees’ perceptions of organizational justice on affective commitment, and the moderating effect of leadership style in the relationship. The authors proposed that the positive association of interactional justice with affective commitment is stronger than the positive association of procedural and distributive justices with affective commitment. In addition, the authors hypothesized that leadership style in teams moderates the relationship between interactional justice and affective commitment. Data were collected from 10 companies in Shenzhen, Shanghai, Beijing, Wenzhou, Wuhan, and Qingdao, China. The results support the hypotheses stating that interactional justice has a robust impact on affective commitment and that leadership in teams moderates the relationship. These findings have important implications for human resource management. When setting up HR policy in China, putting the right HR procedures in place is essential. Employees’ affective commitment relies heavily on interactional justice and whether or not employees perceive that they are being treated fairly by their managers. We discuss the implications of these findings.     

Great Places to Work®: Resilience in Times of Crisis

We study the resilience of the “100 Best Companies to Work for in America” in times of financial crisis by analyzing their long‐term financial performance. Apart from implementing methods that tackle the statistical problems of stock returns, we use a conditional model to measure financial performance in periods of market growth (bull markets) and market downturn (bear markets). We find that best places to work are indeed resilient in times of crisis since neither their financial performance nor their systematic risk are affected during bear markets: top companies continue to outperform the market during periods of crisis, and the performance of lower‐ranked great workplaces does not deteriorate. Moreover, we find that previous studies were overestimating performance, and only great workplaces on the top half of the rankings exhibit positive excessive returns. © 2015 Wiley Periodicals, Inc.     

The role of strategic HR practices in organisational effectiveness: an empirical investigation in the country of Jordan

This study responds to the call of researchers, and is conducted in a non-western context in the country of Jordan. The study contributes to our understanding of human resource (HR) practices' impact on organisational effectiveness. The empirical analysis is based on theoretical prepositions that motivated employees through good HR practices stay longer and contribute positively to the overall financial performance of organisations. Rigorous statistical testing of the data on the population of financial firms shows that careful recruitment and selection, training and internal career opportunities have a positive impact on reducing employee turnover. Training, in particular, is found to have a strong positive impact on financial performance measured by return on assets and return on equity. Furthermore, the findings provide strong support for the direct approach in strategic HR management–performance research that a group of best HR practices will continuously and directly generate superior performance. Despite such compelling arguments, however, we did not find evidence to support the notion that a bundle of HR practices impact better on financial performance than individual HR practices. It is possible that the optimal configuration may not only be contingent on national context, but could be due to the sector and the specific characteristics of the firm.     

金融危机下制定会计规范提高会计信息质量

文在简要的介绍了金融危机和会计规范之后,通过对会计规范具有影响的金融危机的回顾,得出了一些有益的启示:需要客观看待会计准则在经济危机中的作用,在危机中发现会计规范的缺陷,并构建更严密的会计概念框架以使财务信息无偏差地反映经济现实。当务之急是改善我国会计信息质量低下状况。     

Employee involvement and group incentives in manufacturing companies: a multi-level analysis

The effects of employee involvement and group incentives on organisational commitment and turnover intention were examined using data from a survey of over 4,000 employees in 29 manufacturing companies. Using the mediated moderation model, we investigated the moderating role of capital intensity on the relationships between employee involvement and group incentives and these outcomes, and the mediating role of organisational commitment on the effects of employee involvement and group incentives on turnover intention. The findings revealed that employee involvement is more effective in capital-intensive companies than in labour-intensive companies, but group incentives are more effective in labour-intensive companies. The moderated effects on turnover intention were mediated through organisational commitment. Implications for company policies and future research are discussed.     

Climate Change and Financial Performance in Times of Crisis

Over the past years there has been a debate on the relationship between the environmental and financial performance of businesses, but researchers have not reached any agreement. This research attempts to explore this relationship, especially as in recent years there has been controversy about how this relationship has been affected by the global economic crisis. Taking into account that successfully limiting global climate change to safe levels in the long term is likely to require connecting climate change policies to sustainable development strategies, this paper focuses on the performance of environmental policies. We used a sample of 855 international companies in sectors of intensive greenhouse gas/CO₂ emissions. Specifically, we used data from the Forbes Global 2000 Index and Carbon Disclosure Project data from 2006 to 2009. The data analysis was performed using panel data methodology. The results obtained show that in times of economic crisis, the synergy between environmental and financial performance is higher, meaning that companies must continue to invest in sustainable projects in order to enhance relations with their stakeholders, leading to higher economic profits. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

HRM and performance: the vulnerability of soft HRM practices during recession and retrenchment

This multi‐method case explores how change in HRM implementation can impact performance metrics in a recessionary climate. Qualitative HR outcome data are mapped against financial metrics to explore adoption of hard‐line HRM practices in a major UK retailer. Despite record profits throughout the recession, the organisation responded strategically to worsening conditions in the labour market, firstly to maintain operational flexibility, but then to opportunistically enlarge jobs and intensify work to help achieve immediate gains in financial metrics, including a gain of 37 per cent in profit per employee over 3 years. These gains were achieved by derailing commitment‐based approaches to HRM, pointing towards the vulnerability of soft HRM systems during times of austerity or retrenchment.     

Predicting pro‐change behaviour: the role of perceived organisational justice and organisational identification

This study sets out to determine some of the key factors that foster employees’ behavioural support for change management interventions. Specifically, we examine the relationships between organisational justice, organisational identification and employees’ pro‐change behaviour by analysing questionnaire‐based survey data from 137 market research employees. Full structural equation modelling results indicate that out of the four main organisational justice types, only interpersonal justice perceptions play a significant role in predicting pro‐change behaviour after controlling for same source bias effects. In particular, the relationship between interpersonal justice and pro‐change behaviour is partially mediated by organisational identification. The results additionally indicate that age is positively associated with pro‐change behaviour and tenure with organisational identification. The study as such indicates that while perceptions of fair treatment based on respectful and courteous interactions are important in encouraging employees’ behavioural engagement in change management interventions, key in this process is the role that they play in encouraging identification with the employing organisation.